Thursday 29th October 2026

 Gas and power prices reach new highs supported by ongoing tensions in the Middle East.

Gas and power

Power and gas prices closed higher yesterday, with several contracts hitting new intraday highs. Markets were driven by reports that President Trump stated “anything is possible” when asked about strikes on Iran after the US midterms, alongside reports that the US has advised several Gulf Arab nations to prepare for a short, intense military campaign after the midterms. These developments added to existing LNG supply concerns, with shipping through the Strait of Hormuz heavily disrupted. As a result, Europe continues to compete with Asia for global LNG, while European gas storage levels remain at their lowest since 2009. Meanwhile, long-term temperature forecasts for early November were revised slightly higher. 

Adjacent markets

UK 10-year gilt yields fell to their lowest level in over a month on Wednesday as investors assessed the implications of John Healey’s first Budget. Key measures included support for household energy bills, an increase in minimum wages and a smaller-than-expected rise in taxes on banks. Oil prices moved higher following reports that the US had warned Gulf states to prepare for a short but intense military campaign after the US mid-term elections on 3 November.

Closing prices